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Sam
Sam, Attorney at Law
Category: Legal
Satisfied Customers: 27010
Experience:  More than 20 years of experience practicing law.
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Deferred Maintenance in Reserves - is this ok

Customer Question

Deferred Maintenance in Reserves - is this ok
Submitted: 1 year ago.
Category: Legal
Expert:  Sam replied 1 year ago.
Hello​This is Samuel. Are you referring to a HOA or Condo Association? What state, please?
Customer: replied 1 year ago.
Condominiums and Florida
Expert:  Sam replied 1 year ago.
Thank you. Let me review a few things and you will be notified here when I have responded. Thanks for your patience.
Customer: replied 1 year ago.
thank you for your assistance
Expert:  Sam replied 1 year ago.
You're welcome. Yes. It is legal. As a matter of fact, it is mandated under FLA statute 718.112(2)(f) 2a2.a. In addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000. The amount to be reserved must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item. The association may adjust replacement reserve assessments annually to take into account any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance. This subsection does not apply to an adopted budget in which the members of an association have determined, by a majority vote at a duly called meeting of the association, to provide no reserves or less reserves than required by this subsection.
Expert:  Sam replied 1 year ago.
Thanks again for your patience.
Expert:  Sam replied 1 year ago.
Please let me know here if you have other questions or need clarification. Otherwise a Positive rating ensures i get credit for my time.